The pair AUD/USD has opened upward this week, due to the poor data on the US labor market. Recall that in October the number of jobs outside agricultural sector has reduced to 214 thousand. However, the rise in the pair has been short-term. The price had reached the upper line of Bollinger bands at the level of 0.8683 and then corrected. Currently, the price has broken down the level of 0.8615 (middle line of Bollinger bands), which give chance for the further decline up to the level of 0.8540. At this level the pair can reverse and start upward movement.
Support and resistance
Technical indicators do not give clear signals. Bollinger bands are turning upwards; however the price chart has broken down the middle line, which indicates probability of the further decline. MACD histogram is in the negative zone; its volumes are stable. Stochastic lines are moving sideways.
Support levels: 0.8540 and 0.8500.
Resistance levels: 0.8615, 0.8700 and 0.8755.
In the current situation it makes sense to open short positions at the current price and take profit at the level of 0.8540. Pending buy orders can be placed at the level of 0.8540. Pending buy orders can be also placed at the level of 0.8615 with the target of 0.8700.
Analyst of LiteForex Investments LimitedPublication source